Kellogg reaches five-year master contract with labor unionKellogg and the Bakery, Confectionery, Tobacco and Grain Millers union announced the ratification of a new five-year master contract that covers the company's four ready-to-eat cereal plants in Battle Creek, MI; Memphis, TN; Omaha, NE; and Lancaster, PA. The current contract is scheduled to expire on October 3. Approximately 1,300 employees are covered under this new contract. The contract narrows the gap in labor costs at the company's RTEC locations across its manufacturing network and in the industry, according to Kellogg. It includes concessions on future healthcare costs, and the company also noted that there will be no retiree health care for new hires. There also will be a new transitional employee classification that will provide "more competitive" wages and benefits along with the opportunity to reach regular employee status. Finally, while the contract includes Kellogg's commitment to keep all four of its U.S. RTEC plants open for at least the next five years, Kellogg noted that it has "the flexibility to optimize production lines as the category continues to evolve."